updated: 12.05.08
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Smallholder Dairy Commercialization Programme

In Kenya, at least 800,000 small farmers depend on dairying for their livelihood. Dairying improves their families' nutrition and provides them with income. In addition to family labour, dairying generates jobs such as wage labour and mobile milk trading for a further 365,000 people. These jobs benefit the poorest people in urban and rural areas.

The informal sector is the dominant force in milk trading. About 75 per cent of traded milk is sold outside the processing sector, partly because consumers prefer unprocessed milk and partly because there are inefficiencies in formal trading.

This programme fosters market-driven development of the informal dairy industry. It will work with smallholder dairy producers and traders to strengthen their capacity to respond to market opportunities. It will build their understanding of the market and their technical knowledge of production processes.

The programme targets resource-poor dairy farmers  and small-scale intensive dairy farmers, as well as mobile milk traders and  operators of small milk bars and shops. Women comprise about 65 per cent of those expected to benefit.

Activities financed by an IFAD loan and grant will help farmers and traders improve their organizational and enterprise skills. It will provide technical support for smallholder dairy producers and will assist in development of the milk marketing chain. It will also support policies and institutions and provide assistance in programme management and coordination.

Source: IFAD

In this section
Contact information
Mr Robson Mutandi
Country programme manager
IFAD
Via Paolo di Dono, 44
00142 Rome, Italy
Tel: +39 0654592260
Fax: +39 0654593260
r.mutandi@ifad.org

Facts and figures

Total cost: US$19.8 million

IFAD loan: US$17.5 milion

IFAD grant: US$845,000

Duration: 2006-2012

Geographical area: 9 districts in western Kenya

Directly benefiting: 24,000 households

Status: ongoing

Partners
  • Ministry of Livestock and Fisheries Development
  • UNOPS